Correlation Between Xinjiang Zhongtai and Kunwu Jiuding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Zhongtai Chemical and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Xinjiang Zhongtai and Kunwu Jiuding and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Xinjiang Zhongtai with a short position of Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Zhongtai and Kunwu Jiuding.
Diversification Opportunities for Xinjiang Zhongtai and Kunwu Jiuding
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xinjiang and Kunwu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Zhongtai Chemical and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment and Xinjiang Zhongtai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Xinjiang Zhongtai Chemical are associated (or correlated) with Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Xinjiang Zhongtai i.e., Xinjiang Zhongtai and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Xinjiang Zhongtai and Kunwu Jiuding
Assuming the 90 days trading horizon Xinjiang Zhongtai Chemical is expected to generate 0.5 times more return on investment than Kunwu Jiuding. However, Xinjiang Zhongtai Chemical is 2.01 times less risky than Kunwu Jiuding. It trades about 0.3 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about 0.12 per unit of risk. If you would invest 332.00 in Xinjiang Zhongtai Chemical on September 14, 2024 and sell it today you would earn a total of 137.00 from holding Xinjiang Zhongtai Chemical or generate 41.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Xinjiang Zhongtai Chemical vs. Kunwu Jiuding Investment
Performance |
Timeline |
Xinjiang Zhongtai |
Kunwu Jiuding Investment |
Xinjiang Zhongtai and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinjiang Zhongtai and Kunwu Jiuding
The main advantage of trading using opposite Xinjiang Zhongtai and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Zhongtai position performs unexpectedly, Kunwu Jiuding can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.Xinjiang Zhongtai vs. Linewell Software Co | Xinjiang Zhongtai vs. Hainan Mining Co | Xinjiang Zhongtai vs. Chenzhou Jingui Silver | Xinjiang Zhongtai vs. Fujian Rongji Software |
Kunwu Jiuding vs. Lier Chemical Co | Kunwu Jiuding vs. Shenyang Chemical Industry | Kunwu Jiuding vs. Guangzhou Jinyi Media | Kunwu Jiuding vs. Beijing Jiaman Dress |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Transaction History View history of all your transactions and understand their impact on performance | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |